Iofina Share Discussion Threads

[roboben] 23/11/2013 10:47

Bobsworth - I don't know whether it's still the case, but some negotiations foundered over start dates for exploration and exploitation of IOF's resources.

Unless they can get agreement for rapid progress there won't be much point in signing any JV. Who wants a JV in which the partner does nothing for several years?

Given the activity going on at the moment it may not be too straightforward to find an oil company with assets that can be diverted to Iofina's land quickly.

Just guessing, but I think the above may have something to do with the time this is taking. Iofina will want any partner to get on with things rapidly. If they can't find anyone at the moment they can just continue to sit on what must be a rapidly appreciating asset - even if the market is not recognising it's value at the moment.

[naphar] 23/11/2013 10:35

Yea meadow, you are absolutely correct. It's something I think I tend to take for granted now, why should they produce anything other than high quality, the extraction process is unchanged after all.nbut given recent news of low quality iodine hitting the market, it's good to be reminded of IOF's superiority!

[meadow2] 23/11/2013 10:07

Back to IO#3. We musn't overlook the little gem that states that it is producing iodine of the usual Iofina quality which, if my memory serves, was said to be excellent.

[bobsworth] 23/11/2013 08:58

Johncsimpson

Thanks for that overview. Where on your map is Iofina's land in North Montana?

Also where is the True Oil well that superg1 mentioned with a large conventional oil strike that is bang on the land boundary of Iofina?

Finally with so much oil exploration in the Bakken Forks why has'nt Iofina yet secured a partnership deal to explore its lands for oil/gas? What's it waiting for?

With a threat of an early takeover you would think that Iofina would be racing to find a partner to secure its true oil/gas valuations for it's share holders.

[johncsimpson] 22/11/2013 22:57

Started as a quick looksee before I go to bed but saw the post by RUGRATZ2 and I mentioned having some maps earlier on.

Lets hope this works re the map and I'll have a more thorough look sometime tomorrow. Here goes:

The Alberta Bakken Players in Montana
February 9th, 2011 Category: Oil Plays, Oil Stocks 28 comments

Now that you're familiar with the Alberta Bakken oil play and the players in Southern Alberta, let's cover the players on the US side of the border in Montana. The same scenario is playing out in Montana where several companies are actively working to acquire as much prospective land as possible. The great part about this emerging light oil play is that it is watched by the majors on both sides of the border. American investors can get their exposure through US listed companies without having to go through the currency headache.



Who are the companies positioned to benefit from this emerging play? Let's start with a list of companies operating in Montana with a focus on junior and intermediate producers:

Abraxas Petroleum Corp. (NASDAQ:AXAS)
Alberta Bakken Land: 10,000 net acres
AXAS has over 10,000 net acres in the Alberta Bakken in Glacier and Toole Counties, Montana. For 2012, the company is looking to acquire more acreage and has no immediate plans to start drilling. The primary driver will be the drilling results from other operators such as NFX.

American Eagle Energy (OTC:AMZG)
Alberta Bakken Land: 75,000 acres
American Eagle and its 2 partners (FX Energy & Big Sky Operating) control about 75,000 net acres of Bakken/Three Forks rights (Glacier & Toole Counties, Montana). The company's working interest varies between 33%-50%. In 2011 the AMZG JV parties drilled 3 vertical wells to test oil in the Lodgepole, Bakken and Three Forks; the parties also drilled and fracked a 3,600' lateral (now testing) on one of these three wells. Starting in March 2012 the parties plan to drill 2 more vertical wells and drill, frac and test a 4,000' lateral on one of the vertical wells drilled in 2011.

Arkanova Energy Corporation (OTC:AKVA)
Alberta Bakken Land: 9,900 net acres
AKVA's 9,900 acres are located in Pondera County and Glacier County, Montana. Provident Energy Associates, a subsidiary of Arkanova, entered the completion phase of their horizontal infield Lower Cutbank Sand formation well, Tribal-Max 1-2817 in Glacier County, Montana. The well was spud in October, 2010 and directionally drilled to a total depth of 6,808 ft. This well will test the prospective Exshaw Shale (Alberta Basin Bakken), Sanish/Three Forks and Lodgepole formations. Significant results reported by the company will be a catalyst to ROSE and NFX's share prices.

Compton Petroleum (TSE:CMT, PINK:CMZPF)
Alberta Bakken Land: 79,000 acres
CMT has 79,000 acres located in Cascade County 35 miles west of Great Falls, Montana. Compton entered a farmout joint venture which covers all of the Company's 79,000 net acres, granting Guardian Exploration (TSXV:GX) the ability to earn a 50% interest in this area by incurring capital expenditures on the exploration and development of the property. Compton will retain a 50% working interest in the area without incurring any capital expenditure commitments. Following a combination of 2D/3D seismic, airborne geophysical surveys and geochemical imaging on the lands, Guardian has committed to spud a test well before December 31, 2012, targeting the Bakken oil formation.
Guardian Exploration (TSXV:GX)

Alberta Bakken Land: 10,276 net acres
GX holds 10,276 net acres prospective Alberta Bakken lands in townships directly adjacent to the Blackfeet Nation in Glacier and Pondera County, Montana. The acreage is in an area where Newfield Exploration with 1 known producing horizontal well only 7 miles NW of GX's lands, Rosetta Resources and Anschutz Exploration have focused their Alberta Bakken exploration efforts. The company can potentially earn another 34,500 net acres in Cascade County upon completion of its "farm-in" commitments to Compton Petroleum.

Hillcrest Resources (TSXV:HRH)
Alberta Bakken Land: 28,000 net acres
HRH holds more than 28,000 net acres in Pondera and Teton Counties, Montana. The company plans to begin an exploration program in Q2 of 2012. Results for Primary Petroleum's HZ well program will have an impact on HRH's share price as some of its acreage is directly adjoined to Primary's land base.

International Frontier Resources (TSXV:IFR)
Alberta Bakken Land: 17,400 net acres
IFR holds about 17,400 net acres in Glacier County, NW Montana where NFX and ROSE are currently conducting exploration and development drilling programs. IFR is watching ROSE and NFX de-risk its lands.

Iofina (LSE:IOF)
Alberta Bakken Land: 290,000 net acres
Iofina is not an O&G company, it is a holding company of a group of companies involved in the exploration and production of iodine. However, they hold approximately c.290,000 acres in Northern Montana which are prospective for oil that they intend to farm-out.

Mountainview Energy Ltd (TSXV:MVW)
Alberta Bakken Land: 80,000 net acres
MVW holds 80,000 acres mainly in Pondera County, Montana. For 2012, the company will be targeting Bakken oil on its Stateline and Medicine Lake prospects in NW North Dakota and NE Montana.

Newfield Exploration (NYSE:NFX)
Alberta Bakken Land: 340,000 net acres
NFX has a nice chunk of land in Glacier County, Montana surrounded by ROSE and KWK. In its latest Q2 release, NFX reported 7 vertical wells drilled and 2 horizontal wells placed on production. No results have been announced for the 2 producing horizontal wells which forms the near term catalyst to this play. Results will certainly impact its well partner Stone Energy and the surrounding players Rosetta, QuickSilver and Abraxas.

Passport Energy (CNSX:PPO)
Alberta Bakken Land: 26,000 net acres
PPO's leases are situated in Toole and Pondera Counties, Montana. It has a 60% WI in 43,500 gross acres of oil and gas leases. The company will be spending $3 million in 2010-2011 on exploration activities including at least an 8-well drill program.

Primary Petroleum (TSXV:PIE, PINK:PETEF)
Alberta Bakken Land: 304,000 net acres
PIE currently holds 67.5% working interest in 304, 000 net acres of land primarily in Pondera and Teton Counties. Moving forward in 2011, the company announced a sale and JV agreement with a US major industry partner potentially earning 32.5% WI for $48.5M. The company expects to complete its 6 vertical well drilling program in April of 2012 for testing multi-zone formations on their land: Sunburst, Madison, Lodgepole, Bakken, Three Forks and Nisku. A 6 hz well drilling program will follow starting in July of 2012 to be completed by Jan 2013.

Quicksilver Resources Inc. (NYSE:KWK)
Alberta Bakken Land: 175,000 net acres
KWK has approximately 175,000 net prospective acres held by production in Glacier and Toole Counties, MT.

Rosetta Resources (NASDAQ:ROSE)
Alberta Bakken Land: 300,000 net acres
ROSE confirmed significant oil hydrocarbons in pace and over-pressurize reservoirs in the Banff, Middle Bakken, Three Forks and Nisku formations after completing 11 delineation wells since 2010. It also estimates 13-15 MMboe per square mile of resource in place. Rose earmarked only 5% of its 2012 budget for the Alberta Bakken where 4 HZ wells are currently being completed. Just like NFX, Rose has an ongoing drilling and completion program.

Stone Energy Corporation (NYSE:SGY)
Alberta Bakken Land: 35,000 net acres
SGY has 35,000 net prospective acres for the Alberta Bakken, in Glacier County, Montana. NFX is the operator as SGY's acreage represents its 35% WI in Newfield's land. As part owner in NFX's first horizontal well, any catalyst to NFX's share price will automatically apply to SGY.

[rugrat2] 22/11/2013 20:40

I don't find the Bakken play an easy one to get my head around in terms of the geographic positions of the operators - there are a lot of them, over a large number of oil fields, spread across a wide area. The task isn't made any easier by the lack of decent maps from amongst them, particularly from the very largest and also the smaller private companies. And the bits that we are most interested in with the 'imminent' AWS water permit, ie the Elm Coulee, NE Elm Coulee, Bainsville ... fields, take second place behind the much more heavily developed North Dakota fields in any presentations.

So in a lull in developments in Oklahoma I have had a serious look at Roosevelt and Richland counties, and the following link is the result – I hope that it will be useful to others as a point of reference.



Basically I have overlaid GoogleEarth with those lease areas which have to date had some development in the Bakken and/or the Three Forks formations, either being drilled, currently permitted or having had an application made to DNRC for a 'spacing unit' prior to a drilling permit application going in, during the last two years. Therefore it does not attempt to represent the full leasing areas of the dozen companies referred to, merely the active areas.

Apologies for the muddy way some of the colours have turned out in the key, but hopefully they are recognisable in the body of the map. A few of the gaps in the leases in the Elm Coulee, south of the river, are held by small operators targeting shallow horizons such as SM Energy, or are small areas held by the likes of Fidelity and Newfield, on the edges of their areas of interest further south/south east. I have left them out for clarity. The SW area below Fox Lake and the NW area beyond Brockton and Froid are both lacking any activity at the moment. The 'empty' blocks south of Culbertson, and a good chunk of that northeast are largely held by Continental Resources. I have found that as usual the ownership of some lease sections is split between more than one oil company, but I have only marked the operator to keep it simple.

It appears that the main customers for water from AWS are most likely to be from Continental, Statoil, Oasis and Whiting with Samson, EOG, XTO and G3 making up the numbers in Roosevelt.

By the way, Oasis have recently ordered a second fleet of fracking equipment:

[silverpen] 22/11/2013 20:33

Boggle
re 'Hi all, Investors chronicle published a list (today or yesterday??) of 10 bagger'
As previously posted, I've been in QFI since last year and have seen a x 3 uplift. Great share, great technology, locked in IP and superb threads lead by SueYou as we are here with Superg...gla

[dcgray21] 22/11/2013 20:06

Che7win - after Robsons comments on proactive investor it looks like the first sniff of oil from the drill in Taj and he will be off to the Chinese to sell given he is looking for a trade sale within 2 years . All potentially good stuff combines with Georgia leaking oil as well + another 'deal' in the pipeline - pardon the pun

[che7win] 22/11/2013 19:35

Superg,
Yes, poor 9 month results, too high admin charges and a toned down comment on the latest well being drilled.

All those will change with the cash in the coffers.

I am in TPL for one reason - Tajikistan, drilling won't start there until 2015.

[timbo237] 22/11/2013 19:08

An interesting week.

The company announces record output from IO1 and IO2 with IO3 now producing (albeit later than expected) and the share price drops 10p in the week.

Looking at my notes we closed at 160p on 8 March 2013 (37 weeks ago) and I can't recall any serious contributors suggesting we were significantly overvalued then and look at the progress the company has made since.

Successful placing
IO1 and 2 significantly more productive
IO3 now on stream
Patent achieved
Water permit pending
IO4 -6 in progress (again slower than hoped for)

Because of the significant research from superg et al we are way ahead of the market in understanding the potential of IOF. The market can only go on the RNS's the company issues and due to the limited information released (quite deliberately imo) we are where we are with the share price.

I think the company is not too concerned at the current share price but 2014 will be a big year for IOF and provided it delivers on the expectations then medium and long term investors here will be handsomely rewarded (even those who got in at much higher prices than where we closed today.

[bogg1e] 22/11/2013 17:56

Hi all, Investors chronicle published a list (today or yesterday??) of 10 bagger companies of the future, which i have copied over from the QFI thread. Iofina is amongst the list and a few that i have heard mentioned by SG and others and includes my personal all time fave QFI (Quadrise):

PURE
CLIN
NANO
HCM
WAND
POS
IGAS
IOF
QFI
VLS
BLUR
HYR
ESG
MYXR
FIP
CWR
SEE
GRPH
ENEG
VRS
CLNR
BOD

[johncsimpson] 22/11/2013 17:44

Somewhere in my Iofina folders, I have some notes and maybe a map or two that I have extracted from a Canadian 'oil stock watcher' site which came to my attention earlier this year. They did some articles on the Alberta Bakken and Iofina was actually mentioned. I exchanged posts with them as recently as last week but because Iofina are not listed in either Canada or USA the trail went cold and they seemed not to want to, as it were, be anymore helpful so I deleted a lot of my ancillary notes.

There was, at the end of the day, nothing to get excited about but from the eight or ten players they originally listed only one (Three Dees from memory) came up with commercial oil, so the Alberta Bakken can, I think, be discounted for oil within the Iofina equation - unless someone knows better.

[woodpeckers] 22/11/2013 17:21

Where do they get the "concerns about operating costs"??? Presumably they are talking about competitors' concerns.

[baht] 22/11/2013 17:14

escapetohome
21 Nov'13 - 21:08 - 831 of 833 1 0


Dipped a toe in GRPH today - appears to be at a discount to a certain new issue which has risen very sharply on floatation, bound to be some comparisons.

Not recommending this as a tip though - just one of my own small speculations for my SIPP

Did you get your IC early this week? Good timeing if not, well done.

[superg1] 22/11/2013 16:14

Jointer

It was only a few months back that a certain broker or two, hadn't got a clue what Atlantis was, no one would believe me if I said who that was.

As you know the Atlantis acreage, includes a gas aquifer, that contains iodine, gas and not a lot else other than salt.

Then the lower levels include the Nisku, Niobara, 3 forks, and Alberta Bakken, to name a few.

The current water rights application is a different matter, and not connected.

[obbig60] 22/11/2013 16:10

This weeks Investors Chronicle has an article on AIM "Game - changers" which includes a mention of IOF. Here is a list of the shares mentioned in the article:

Purecircle PURE
Clinigen CLIN
Nanoco NANO
Hutchison China Meditech HCM
Wandisco WAND
Plexus POS
Igas Energy IGAS
Iofina IOF
Quadrise Fuels QFI
Velocys VLS
Blur BLUR
Hydrodec HYR
Eservglobal ESG
Mycelx Technologies MYXR
Fusion Ip FIP
Ceres Power CWR
Seeing Machines SEE
Graphene Nanochem GRPH
Enegi Oil ENEG
Versarien VRS
Cluff Natural Resources CLNR
Botswana Diamonds BOD

[obbig60] 22/11/2013 15:49

As mentioned by SG, IOF gets a brief mention in this weeks Investors Chronicle in an article about AIM "game-changers". Nothing to get excited about, but for anyone interested here is the text of the IOF entry:

IOFINA (IOF)
Iofina's proprietary method of extracting iodine from the wastewater associated with shale oil and gas has the potential to transform the market for iodine. Iodine has a vast range of uses, ranging from speciality electronics to animal health products and disinfectants, but is conventionally expensive to produce. It currently sells for around $50 a kilogramme, yet Iofina's IOsorb plants can supposedly produce it for as little as $10-$20 a kilogramme - about half the cost incurred by competitors mining iodine in Chile.
Iofina has two other non-core assets that have serious blue-sky potential, including the Atlantis water project in Montana and certain deep-shale exploration rights. The water project could be particularly lucrative. Iofina plans to sell water to oil and gas companies that need it for drilling activities, and the project is at an advanced stage of the permitting process.
Granted it's still early days for Iofina as the IOsorb plants do not yet have a reliable operational track record and there are concerns about operating costs. As such Iofina should certainly be regarded as a high potential but high-risk investment. But if the company manages to bring its few plants online successfully and on time, the shares could quickly turn out to be a worthwhile investment.

[jointer13] 22/11/2013 15:22

well I think that's a first sg...brokers normally think the atlantis project is the same as the water project.
sounds all positive..as it should.

[superg1] 22/11/2013 14:55

Pure coincidence but I see IC (22nd-28th Nov) has just listed the promising flyers, the two just mentioned are in it, as are QFI and others I have seen mentioned here.

Re IOF

It says IOF has the potential to transform the iodine market.

Imo execution of the business plan will achieve that.

BUT, they add more which I haven't seen in many IOF comments before

They talk of two other non-core assets that have serious blue sky potential.-:

The Atlantis project with it's deep rights, and the water project which it calls 'particularly lucrative' and at an advanced stage of the permitting process.

[superg1] 22/11/2013 14:14

Scrut

All I'm doing is conveying my thought processes, it comes down to simple maths.

Some of the original OK producers have been running 25 and 35 years roughly on the same spot.

A 200mt per year site is the same as oil well revenue rate of 340 bopd every day for 15 years.
But in IOFs case they know where the guaranteed 'oil' is before they make the capex spend.

There is talk of 80k bpd sites which make 500-600 mt just at 150ppm.

Yes the io2 site, from limited facts so far, looks capable of 700mt p.a to me, if 50k plus bpd is to be constant, and fully exploited (a 1200 bopd site).
With the expansion going on in OK there is little likelihood of barrels of brine dropping, in theory it should rocket over the next few years.

io2 won't be the only lucrative site as explained in one rns

'the discovery of multiple sites with extremely high iodine concentrations'


Hence I stick around as I can see the potential. It's not often you can be in a share with such predictable potential, with the majors feeling the squeeze, and in some ways falling apart.

What others think is up to them, and they should invest, or not, as they see fit.

[che7win] 22/11/2013 14:10

Thanks Librarian / Roboben,
so back to my original point, all looks ok - but we need to extract iodine from these leases before they expire it seems.

No immediate alarm bells there, but I would like more details on this at some stage.

[iofra] 22/11/2013 13:16

with patent protected technology!

[the librarian] 22/11/2013 13:11

I knew someone had covered that point Che7win

Roboben - 10 May 2013 - 13:26:34 - 24665 of 26091



Some comments on the Iodine leases which the company is securing.
This is my understanding. Open to correction on errors!

The initial lease can be for a period of from 3 to 5 years. They vary!

Once a certain amount of Iodine has been produced (that varies, too apparently, according to Jeff, but he was a bit vague here. Fair enough, he can't have all details at his finger-tips!) then the lease is secured for Iofina in perpetuity. Or, I imagine, until Iofina give it up. (Why would they ever want to, unless the supply of Iodine was exhausted?)

The leases are with the landowners, not the oil companies.

Apparently the oil companies have been very helpful on getting details of the landowners to Iofina. After all, the sooner the leases are signed the sooner Iodine production can begin and the sooner the oil company gets it's cut!

The interesting bit is this. Once production has begun the oil company is in no position to say to Iofina " Thanks for what you've done but we don't want you messing with our brines any more. We can get a better deal from TRN". I imagine that the oil company could, indeed, end it's contract with Iofina if it really wanted to but it couldn't offer the contract to anyone else because THE IODINE IN THE BRINE IS IOFINA'S under the terms of the lease drawn up with the landowner!

This is why they've been trying to tie up as many leases as possible on the high ppm brine areas. It's why they want to remain under the radar for another six months or so. By that time they'll have all the best areas tied up, they reckon.

Even if they put their tech into the public domain at that point nobody could threaten their dominance unless areas with higher ppm Iodine rich brines could be found that rivals could sign up. Unless that happened Iofina would still be the world's lowest cost producer of Iodine!

That's really quite a major barrier for potential competitors to get over.